hi
can anybody give me some information on the new vendor duty tax(in nsw), ill just throw some easy figures into this example (lets forget about all the normal costs such as legal fees etc for these examples) can someone tell me if these are correct.1)okay i purchase a house for 100k and sell it
for 110k. i have made a 10% profit because i have made a profit of less then 12% no vendor duty tax is payable.(is this correct)2)i purchase a house for 100k and sell it for 120k
i have made a 20% profit, so because i have made more then 12% i have to pay vendor duty tax of $2700 (2.25% of 120k) i think this is correct3)i purchase a house for 100k spend 10k on a reno and sell for 120k do i have to pay vendor duty now (because the value has gone up 20% since i bought it) or am i exempt, because my gain was less then 12%
(i hope it all makes sense)
thanks in advancek hook
1) Correct
2) Correct
3) Pay vendor tax on $120k… tax is calculated as per wording on dutiable value of the property at the date of sale
http://www.osr.nsw.gov.au/portal/page?_pageid=33,193927&_dad=portal&_schema=OSRPTLT
Just a handy tip re taxes. Any state taxes can be found at http://www.osr.nsw.gov.au as in Office of State Revenue, and any federal taxes can be found at http://www.ato.gov.au (Australian Tax Office). Both are pretty easy to navigate.
Dan.
The most important thing is to make the most important thing, the most important thing.
Anon.
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